Netweb Technologies India Ltd. has seen its stock price correct by nearly 20% from its all-time high of Rs 5,241.65, recorded on June 19, 2026. This dip comes despite the company announcing robust financial results for the June 2026 quarter, prompting domestic brokerage firms to maintain a positive outlook with potential upsides of up to 30%.
Strong Q1 Performance Driven by AI Demand
For the first quarter of fiscal year 2027 (Q1FY27), Netweb Technologies reported a significant 180% year-on-year (YoY) increase in net profit, reaching Rs 85.23 crore, up from Rs 30.48 crore in the prior-year period. The company's profit after tax (PAT) margins also improved by 22 basis points to 10.30%.
Revenue from operations soared by more than 172.3% YoY to Rs 819.68 crore, marking the company's highest-ever quarterly revenue and PAT. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at Rs 120.51 crore, a 169% YoY rise, with margins at 14.70%.
A key driver for this growth was the company's AI systems income, which surged nearly fivefold to Rs 510.57 crore. As of June 30, 2026, Netweb's order book was substantial at Rs 2,506.93 crore, while net debt was approximately Rs 200 crore.
Stock Performance and Brokerage Outlook
The Netweb Technologies stock, initially launched with an IPO price of Rs 500 in July 2023, has delivered multibagger returns, soaring over 1,050% to its peak. Despite the recent 20% correction to Rs 4,197.05, the shares rebounded nearly 10% on Friday to close at Rs 4,597.95, giving the company a market capitalization exceeding Rs 26,000 crore. Year-to-date in 2026, the stock has gained nearly 50%, and it's up 125% over the last year.
Analyst Recommendations
- ICICI Securities highlighted strong growth in Netweb's strategic segments and a robust pipeline of Rs 10,410 crore, up 151% YoY. The firm noted the execution of a Rs 430 crore IndiaAI mission-led strategic order in Q1FY27. ICICI Securities maintained a 'buy' rating with a target price of Rs 5,360, based on a one-year forward P/E of 66 times.
- IIFL Securities raised its EPS estimates for Netweb for FY27, FY28, and FY29 by 11%, 18%, and 25% respectively. This revision is attributed to a strong order book of Rs 3,400 crore, ensuring sales visibility of Rs 4,000 crore for FY27. IIFL also noted that advance procurement of critical components like GPUs and DRAM has helped protect margins and ensure timely project execution. The firm maintained a 'buy' rating with a revised target price of Rs 5,698, suggesting a 30% upside from its previous close. IIFL projects earnings to post a 52% CAGR over FY26-29ii.
Analysts emphasize that increasing base order sizes for AI solutions have significantly boosted Netweb's growth and profitability outlook, despite an elevated working capital cycle due to higher inventories supporting this growth.